A new reality awaits leaders on the other side of the summer
Coronavirus will forever be a landmark for the 21st century and most corporate strategies. Managers need to spend the summer as a breather, and ensure that employees do so as well, while planning to roll into a new reality where digitalization is moving with fast speed ahead and the labor market is reprogrammed.
Recently, we ended a wind-blowing half-year that has turned the world upside down. Covid-19 will forever serve as a 'before' and 'after' marker in the 21st century.
Many business executives have realized that there is no 'back to business as usual'. Instead, the crisis should be used to transform business and come out stronger on the other side. Despite the enormous and tragic consequences, we suffer as a result of the pandemic, crises are historically known to create new business opportunities, and it is about gaining momentum.
Whether you hop on the train or not, there is a departure, and change is accelerating rapidly.
Digital transformation speed - from years to months
Digital transformation was an inevitable megatrend before the corona, but in a short time, it has reached new heights.
It is clear, that the companies that have reached the longest on their digital journey have come strongest through the first part of the crisis. These are companies that understand how to use artificial intelligence in the supply chain, so they can, for example, track inventory in real-time. Those who have built a digital twin that allows testing and optimization against different scenarios. And companies that have so much data on their customers that they can offer 1:1 contact and tailor-made product selections. As the world went into lock-down and a lot of commerce, as well as new consumer groups, moved online, digital business models made a big profit.
It has accelerated the digital transformation of companies. What used to take a quarter now takes a few days. I spoke with a CEO the other day who told me that his organization had achieved its digital goals - which had otherwise been part of a three-year strategy - in just three months.
There is no way back, the future is digital. Companies that are not already well on their way to digitizing core processes need to get started.
Upgrading and reallocating the workforce
In line with the technological development and digitization of societies and companies, the demands on the skills of the workforce are also changing - rapidly and radically.
People with skills in big data, machine learning, artificial intelligence, product development are increasingly needed. in a digital world. This includes creativity, collaboration, and interpersonal skills, as well as skills in digital sales and marketing, HR, and teaching.
Even before corona, the OECD predicted the need for further qualifying a billion employees worldwide by 2030, and the pandemic has only amplified this need and accelerated the timeline.
At the same time, the crisis has already created major changes in the labor market in record time. Employees from the gig economy, hotel, and airline industry have suddenly become unemployed, while there has been a shortage of labor in the grocery, health care, and school sectors. This has resulted in significant changes in the industry in a very short time.
An example of this is Scandinavian Airlines, which in March trained a lot of returning cabin staff to work as assistant nurses. And I still believe that society and businesses need to have a plan to collaborate between industries and sectors as we do not know what reality awaits us. Adaptability is the new gold for companies.
As summer sets in, our relief packages expire. This will result in a value-adding restructuring of the economy and a shift between old and new businesses, which is necessary to maintain our competitiveness. But we also need to prepare for redundancies and changing cost structures. At the same time, there is a risk of a flare-up of coronavirus and a new wave of infection spreading in the fall.
All in all, the world, Denmark as a society, our companies, and the individual Dane face a future that has rarely looked so uncertain. One thing is certain though. Our future is digital and it will also become an important agenda point for the recovery of the Danish economy.
Dear leader, therefore, do not pull the plug completely during the holidays, let it stay in, and be sure to recharge to the new reality that awaits us all.